Don’t miss out, make sure your business claims the new Employment Allowance

Employment Allowance aims to reduce employer class 1 National Insurance (secondary) Contributions by £2,000 a year from the 6th April 2014.

“Small businesses and entrepreneurs are the life blood of our economy” a quote from our Prime Minister David Cameron

It finally it looks like he is putting his money where his mouth is.

Employment Allowance will benefit mostly small businesses.

From 6th April 2014 most employers will not be required to pay the first £2,000 of any Employer Class 1 National Insurance (secondary) Contributions.

Most businesses are eligible to claim Employment Allowance if they have employees or directors with gross earnings that attract national insurance deductions.

The annual allowance of £2,000 will be allocated to all UK businesses providing the business meets the qualifying conditions.

There are some exemptions, not all businesses can claim the allowance.  Check out your businesses eligibility with HMRC if you’re not sure or give us a ring contact us

Exempt businesses are;
  • Domestic employers who employ carers, gardeners, chauffeurs etc for there own personal service (i.e. not an agency)
  • Public Authorities
  • Businesses who carry out work mainly in the public sector
  • Businesses who already claim through a connected business

Employment Allowance can only be offset against payments of Employer Class 1 National Insurance (secondary)  contributions.  The allowance cannot be used to reduce any other payments.

How to claim Employment Allowance for your business?

Simply offset the payments of Employer Class 1 National Insurance (secondary) contributions due to HMRC until you have  reached the £2,000 limit.

If in doubt give us a call, we calculate and reclaim Employment Allowance for all our clients FREE of charge.  We could claim for your business too!

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